The US-led offensive to recapture the Iraqi city of Mosul from ISIS is making progress, AFP reports.

ISIS had "returned to suicide bombing" because the area under its control was shrinking and it was on the defensive, Brett McGurk said at a conference in the Jordanian capital.

His remarks came as jihadist suicide assailants broke into a gas plant north of Baghdad and killed at least seven people, in an attack claimed by ISIS.

"We are now making progress against Daesh," McGurk said, using an Arabic acronym for ISIS. "The campaign to isolate and squeeze and constrict Daesh in Mosul has already began."

"We are doing precision air strikes in Mosul almost every day, we have a lot of information from the people who are inside Mosul about what Daesh is doing inside the city."